McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Commerce (B Com) .
Chapters
| 1. |
____ is a systematic record of all the economic transaction between one country and rest of the would: |
| A. | Balance of Trade |
| B. | Balance of Transaction |
| C. | Budget |
| D. | Balance of payments |
| Answer» D. Balance of payments | |
| 2. |
As per IMF balance of payment manual, import export of goods should be presented on: |
| A. | FOB basis |
| B. | FOR basis |
| C. | CIF basis |
| D. | All of these |
| Answer» A. FOB basis | |
| 3. |
OECD stands for: |
| A. | Organization for export co-operation & development |
| B. | Organization for economic commission & development |
| C. | Organization for export commission & development |
| D. | Organization for economic co-operation & development |
| Answer» D. Organization for economic co-operation & development | |
| 4. |
India has witnessed a surplus for the third successive year in which account of the balance of payment? |
| A. | Trade account of BOP |
| B. | Current account of BOP |
| C. | Both (a) and (b) |
| D. | None of these |
| Answer» B. Current account of BOP | |
| 5. |
In India which authority takes the purview of import & export: |
| A. | EXIM |
| B. | RBI |
| C. | Ministry of Finance |
| D. | Ministry of commerce |
| Answer» D. Ministry of commerce | |
| 6. |
Devaluation means: |
| A. | To reduce the value of home currency in other currency |
| B. | To appreciate the value of home currency |
| C. | To increase the value of home currency in other currency. |
| D. | To constant the value of home currency. |
| Answer» A. To reduce the value of home currency in other currency | |
| 7. |
_______ is a systematic record of all transactions of a country in a year. |
| A. | Balance of payment |
| B. | Balance of Trade |
| C. | Current Account of Balance of Payment |
| D. | None. |
| Answer» A. Balance of payment | |
| 8. |
The current account of Balance of Payment includes trade balance and _______. |
| A. | Settlement account |
| B. | Capital account |
| C. | Invisibles |
| D. | Errors and omissions. |
| Answer» C. Invisibles | |
| 9. |
Balance of payment deficit can be removed through: |
| A. | Devaluation of currency |
| B. | Vigorous export promotion |
| C. | Import substitution |
| D. | All of the above. |
| Answer» A. Devaluation of currency | |
| 10. |
The difference between the value of a nations visible exports and visible import is. |
| A. | Balance of trade. |
| B. | Balance of payments. |
| C. | Balance of current Account. |
| D. | Balance of Capital Account. |
| Answer» A. Balance of trade. | |
| 11. |
Which of the following is NOT a restriction to international trade? |
| A. | Quotas. |
| B. | GATT. |
| C. | Subsidies. |
| D. | Exchange controls. |
| Answer» B. GATT. | |
| 12. |
FDI stands for: |
| A. | foreign direct investment. |
| B. | foreign domestic investment. |
| C. | foreign direct intervention. |
| D. | foreign direct intermediation |
| Answer» A. foreign direct investment. | |
| 13. |
The balance of payments of a country records flows of money from: |
| A. | imports and exports and investment flows. |
| B. | imports and exports and investments flow and speculative flows. |
| C. | imports and exports. |
| D. | imports and exports and domestic demand. |
| Answer» B. imports and exports and investments flow and speculative flows. | |
| 14. |
Trade between two countries can be useful if cost ratios of goods are: |
| A. | Undetermined |
| B. | Decreasing |
| C. | Equal |
| D. | Different |
| Answer» D. Different | |
| 15. |
The term Euro Currency market refers to |
| A. | The international foreign exchange market |
| B. | The market where the borrowing and lending of currencies take place outside the country of issue |
| C. | The countries which have adopted Euro as their currency |
| D. | The market in which Euro is exchanged for other currencies |
| Answer» B. The market where the borrowing and lending of currencies take place outside the country of issue | |
| 16. |
Which of the following theories suggests that firms seek to penetrate new markets over time? |
| A. | Imperfect Market Theory |
| B. | Product cycle theory |
| C. | Theory of Comparative Advantage |
| D. | None of the above |
| Answer» B. Product cycle theory | |
| 17. |
Dumping refers to: |
| A. | Reducing tariffs |
| B. | Sale of goods abroad at low a price, below their cost and price in home market |
| C. | Buying goods at low prices abroad and selling at higher prices locally |
| D. | Expensive goods selling for low prices |
| Answer» B. Sale of goods abroad at low a price, below their cost and price in home market | |
| 18. |
International trade and domestic trade differ because of: |
| A. | Different government policies |
| B. | Immobility of factors |
| C. | Trade restrictions |
| D. | All of the above |
| Answer» D. All of the above | |
| 19. |
The margin for a currency future should be maintained with the clearing house by |
| A. | The seller |
| B. | The buyer |
| C. | Either the buyer or the seller as per the agreement between them |
| D. | Both the buyer and the seller |
| Answer» D. Both the buyer and the seller | |
| 20. |
The following statement with respect to currency option is wrong |
| A. | Foreign currency- Rupee option is available in India |
| B. | An American option can be executed on any day during its currency |
| C. | Put option gives the buyer the right to sell the foreign currency |
| D. | Call option will be used by exporters |
| Answer» D. Call option will be used by exporters | |
| 21. |
Govt. policy about exports and imports is called: |
| A. | Commercial policy |
| B. | Fiscal policy |
| C. | Monetary policy |
| D. | Finance policy |
| Answer» A. Commercial policy | |
| 22. |
Which of the following is international trade? |
| A. | Trade between countries |
| B. | Trade between regions |
| C. | Trade between provinces |
| D. | Both (b) and (c) |
| Answer» A. Trade between countries | |
| 23. |
Market in which currencies buy and sell and their prices settle on is called the |
| A. | International bond market International capital market |
| B. | Foreign exchange market |
| C. | Eurocurrency market |
| D. | none |
| Answer» C. Eurocurrency market | |
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